U.K. Stocks Rise, Snapping Six-Day Losing Streak

March 17 (Bloomberg) -- U.K. stocks rose for the first time
in seven days, snapping the longest stretch of losses since
November 2011, as data showed house prices surged to a record
and U.S. industrial production rose more than forecast.

The FTSE 100 Index added 40.46 points, or 0.6 percent, to
6,568.35 at the close of trading in London. The benchmark gauge
declined 2.8 percent last week, the biggest slump since June, as
concern grew that a potential partition of Ukraine will
intensify tensions between the U.S. and Russia. The broader FTSE
All-Share Index gained 0.7 percent today, while Ireland’s ISEQ
Index rose 1.1 percent.

“The U.K. recovery relies heavily on real-estate
investments,” said Witold Bahrke, who helps oversee $55 billion
as a senior strategist at PFA Asset Management in Copenhagen.
“So any renewed flow into equities will naturally favor this
sector. The calm and relief mode we’re seeing today may be
rather short-lived though, as the geopolitical risks are far
from cleared.”

U.S. Economy

In the U.S., a report showed that industrial production
increased 0.6 percent in February, following a drop of 0.2
percent the previous month. That beat the 0.2 percent gain
economists had forecast in a Bloomberg News survey.

Shares of builders rose as a Rightmove Plc report showed
asking prices for homes in London surged to a record in March.
Prices in the British capital climbed 2.1 percent from February
to 552,530 pounds ($920,000), taking the annual appreciation to
more than 11 percent, the data showed. Nationally, values rose
1.6 percent to 255,962 pounds, also an all-time high.

Persimmon advanced 3.7 percent to 1,361 pence. Bovis Homes
Group Plc gained 4.7 percent to 895 pence. Taylor Wimpey Plc
added 2.1 percent to 118.2 pence. Chancellor of the Exchequer
George Osborne said yesterday he will extend a government
mortgage-assistance plan called Help to Buy to 2020.

Vodafone rose 1.7 percent to 226 pence. The purchase of Ono
gives Vodafone 1.9 million customers in Spain. The deal will
generate savings of about 2 billion euros and potential revenue
addition of 1 billion euros, the company said.

Tesco lost 1.3 percent to 299.7 pence. Bank of America cut
the stock to underperform, or sell, from neutral. saying the
company’s profit margin might fall because of an upcoming price
war. Bank of America cited a statement from Wm Morrison
Supermarkets Plc that it will invest 1 billion pounds in cutting
prices.

The volume of shares changing hands in FTSE 100-listed
companies was 16 percent lower than the average of the last 30
days, according to data compiled by Bloomberg.